Many point-of-sale and other financial transactions take place using card transactions. In these transactions, to provide payment a card user typically presents a credit card, a bank, debit or automated teller machine (ATM) card, or possibly a stored value card. The cards presented are conventionally of one and only one of these types. In addition, the cards presented typically access only a single account.
For example, a user may present a credit card to pay from a credit account maintained by the issuer of the card. The credit card is typically embossed with a unique account number, the cardholder's name, and the expiration date of the card. Data is also encoded on a magnetic stripe on the card. The data identifies the cardholder's account and may be accessed by magnetic card readers connected to a credit card processing system.
An ATM card is used in similar manner. The ATM card is a plastic card that is typically embossed with an account number and the holder's name. The ATM card also includes data encoded on a magnetic stripe of the card. The data identifies the cardholder's account and may be accessed by a magnetic card reader to use the card.
A stored value card is typically used to pay for a specific product or service. The stored value card includes data regarding a limited use account that is limited to providing payment for a specific product or service or for products and services at a specific merchant. The data permits processing equipment at the point of sale to determine the value of funds in the account.
In a typical card payment transaction, for example a credit card transaction, a buyer presents a credit card to a merchant at the point of sale. The apparatus at the point of sale reads account information from the card and passes this information along through a chain of processors where approval is obtained and the transaction posted and charged to the customer's account. The card holder's credit account balance is increased by an amount equal to the amount of the transaction. A similar process occurs for debit or stored value card transactions, except of course the transaction amount is immediately deducted from the card holder's account that is associated with the debit or stored value card.
Typically, once a transaction has been charged and posted to a particular account, the card holder must make payment on the account in order to clear the balance. For debit and stored value transactions this occurs immediately, whereas for credit transactions interest may accrue on outstanding balances until such time as full payment is made. In either case, current systems and methods do not permit the card holder to selectively transfer some or all of the outstanding balances in a given account, such as a credit account, for example, to another account, such as a debit account, for example, on a transaction by transaction basis to achieve a benefit, obtain a reward or better organize and administer the card holder's transactions and payments.